What Additional Responsibilities Come With Your Own RIA?

Описание: So, you want to start an RIA?

You want the better economics that come with it?

The increased flexibility you’ll have with your practice?

But are you aware of the additional responsibilities that come with it as well?

As advantageous as the RIA model is, there is no free lunch.

It’s important to understand what the additional responsibilities are, to determine if they are something you are able/willing to accommodate.

And with your specific situation, whether the added benefits of the model outweigh the added responsibilities.

In this episode of the Transition To RIA question & answer series, I explain what the additional responsibilities are of having your own RIA.

I'm Brad Wales with Transition To RIA (TransitionToRIA.com). This is episode #123 of my question and answer series where I answer RIA related questions I get from advisors just like you.

What I do: At Transition To RIA I help financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model.

RESOURCES & LINKS
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🔹 Website: https://TransitionToRIA.com/
🔹 Show notes: https://TransitionToRIA.com/what-addi...
🔹 Contact me: https://transitiontoria.com/contact/
🔹 List of all questions I've answered: https://transitiontoria.com/videos/
🔹 Podcast: https://transitiontoria.com/podcast/
🔹 Whitepaper ("11 Ways The Economics Of The RIA Model Are Superior To Other Advisor Affiliation Options"): https://transitiontoria.com/whitepapers/

🔹 Transcription of video:

What additional responsibilities come with your own RIA? That is today's question on the Transition To RIA question and answer series. It is episode #123.

Hi, I'm Brad Wales with Transition To RIA where I help you understand everything there is to know about why and how to transition your practice to the RIA model.

If you're not already there, head to TransitionToRIA.com where you'll find all the resources I make available from this entire series in video format, podcast format. I have articles, I have whitepapers. All kinds of things to help you better understand the model.

Again, TransitionToRIA.com.

On this episode we're going to talk about if you were to start your own RIA, what additional responsibilities come with that?

I'll give you a couple motivations for why I want to make this episode, but one of the lead-in ones is there are a lot of people trying to scare advisors into not even considering an RIA path because of these (sarcasm) horrendous responsibilities you will have that you will not want to deal with.

They'll tell you the SEC is going to destroy you, or you're not big enough to go into that RIA model.

I hear from conversations with advisors and teams that reach out to me, they'll often say… “so and so has said this,” is that accurate? And you must be careful who you get information from, as all too often, the source of such information is the advisor’s current firm.

Perhaps the advisor is at a wirehouse firm and they're talking to a colleague or, probably not talking to the branch manager, but somehow if it were to come up and particularly a branch manager, has an incentive to keep you, the advisor, from considering other paths that might take you away from their branch that they're responsible for.

So of course they're going to make it sound like it is going to be a horrible thing. You're going to spend all your time on compliance, and on and on.
We're going to discuss the additional responsibilities, but oftentimes, again, it depends on the source, these things can be blown way out of proportion.
Now, that said, I am a big believer, if you’ve followed along my episodes, of always discussing both sides of the coin.

I talk a lot about the additional flexibility you achieve from having your own RIA. Typically the better economics, on multiple fronts, that comes with it. One of those even being the proverbial, if you have your own RIA, 100% payout. I just did an episode on do RIAs really get 100% payout? And sometimes you hear that being talked about by the pro-RIA crowd. And that's all true.

But I am a believer in saying, let's understand what those advantages are, and there are advantages, but what additional responsibilities come with obtaining those advantages? That's what we're going to talk about on today's episode.

I'm going to give you a couple examples of some of the main additional responsibilities you will potentially have to take on that you potentially don't have now, depending on your current affiliation circumstances.

I'll lead into it by saying for some of you, you've already taken on some of these responsibilities, as perhaps you're already with an independent broker-dealer type model. Con't....

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